Equity Hub

As an example of this strategy, on Monday, July 26, I noticed MARA (a company associated with Bitcoin mining) was trading sharply higher before the open on news that Bitcoin rallied over the weekend. Thinking MARA would be a good long candidate, I began my research with Equity Hub (available to SpotGamma Pro subscribers). The key data from Equity Hub for MARA is shown in the image below.

I noticed two items that supported my bullish thesis: 

I continued my research by looking at the SG Momentum graph for MARA, shown in the image below.

This graph confirmed the high Call Gamma, dominating above the 24 strike and hedging momentum increasing up to 26 and gradually tapering off to 30. For one last check, I entered MARA in the Dark Pool Indicator tool (available to SpotGamma Pro subscribers), shown in the image below. This showed the 5-Day DPI was 55%, indicating strong institutional buying over a period of several days.

After the open, I began looking for long entries. Around 11:45 A.M. ET, hedging flow began to shift from neutral to bullish as shown by the HIRO Indicator in the Bookmap chart below. There were multiple entry points as shown in the chart, with the high liquidity at 30 as a primary target.

I begin my morning preparation by reading the Founder's Morning Note when I plan to trade futures. For ES futures, I note gamma levels and key metrics for SPX and SPY. For NQ futures, I note Gamma Notional, and the Volatility Trigger, Put Wall, and Call Wall gamma levels for QQQ.

When I plan to trade NQ futures during the day, I also look up QQQ in Equity Hub. First, I review the data and note the Hedge Wall and Key Gamma Strike. The Hedge Wall is the strike where the largest change in gamma is detected. The Key Gamma Strike is a strike where volatility may increase or decrease. Both levels can act as pivot or pin areas. 

Next, I look at the 5-Day History for QQQ in Equity Hub. This shows how the metrics for QQQ have changed over the last five days and can indicate rising and falling sentiment. 

Based on this information, I develop a thesis regarding directional bias, anticipated volatility, and trading range for the day. One example of how I used this information to plan and execute trades in NQ futures is shown below.

On August 9, the following metrics for QQQ were shown in the AM Report and Equity Hub:

The 5-Day History also indicated that the Hedge Wall and Key Gamma Strike had risen from the prior day as shown in the image of the 5-Day History from 8/11 below.

Based on the positive Gamma Notional and a neutral Vanna Model, I was looking for a lower volatility day with a narrow trading range. Based on the rising Hedge Wall and Key Gamma Strike, my directional bias was bullish. I was primarily looking for long entries. 

The image below indicates the day played out as anticipated, as shown in Bookmap.

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